PANEL: Hawaii Agtourism Legal/Political Concerns

A Report prepared in 1999 by the Hawaii Tourism Authority called: “Strategic Directions for Hawaii’s Visitor Industry” stated the obvious: it is “Hawaii’s scenic beauty, unique physical features, and multi-cultural heritage which provide high quality experiences for visitors.” Ag Tourism can provide such high quality experiences.

What is Ag Tourism? It is tourism based on attracting visitors to agriculturally-based activities and/or enterprises.

Therefore, Ag tourism offers an opportunity for supplementary income for farmers. And making agriculture more economically sustainable serves as an incentive to protect a region's agricultural lands and life style. Ag tourism pays for protection and preservation. Payment for preservation is a rare combination.

Here in the Kona Coffee Belt we have a fantastic opportunity for such a combination. Kona Coffee is already famous around the world. From Holualoa to Captain Cook and south to Ho’okena, this is a region of spectacular beauty, filled with incredible natural resources and, of course, beautiful farms and ranches of all kinds, together with all the associated activity as well as a rich history and culture based on agriculture. This wealth of culture and history is still evident in the form of many historic buildings such as those which can be found by driving through the Mauka Commercial Corridor. Ag Tourism offers communities extra motivation to provide such structures with adequate protection, renovation, and interpretation. (The organization Pulama Ia Kona is developing a vision for a Heritage Corridor that will eventually extend from Holualoa to Honaunau). Ag tourism could turn out to be the key for the Sustainable Development within the area. Revenue could be earned from restaurants, coffee shops, coffee sales , gift shops, fresh produce markets, Bed and Breakfasts, scenic tours, historical tours, museums, farm tours, pick-your-own, rent-a-tree, trail rides, and special activities such as rodeos, festivals, parades and demonstrations. The Kona Coffee Festival is a very successful long standing established event. Ag Tourism is already providing new dollars to the Mauka Commercial Corridor to make up for those being lost as a result of residents doing their shopping at Costco, thus reversing the trend in economic decline. If tailored to be carefully fitted into the existing environment and lifestyle, the addition of more visitors to the area could provide the extra means for the communities and farmers to support themselves that would at the same time encourage preservation agricultural lands, and the surrounding environment together with the cultural and historic resources and lifestyle.

"Carefully fitted", is a very important phrase. The report I referred to a moment ago, “Strategic Directions for Hawaii’s Visitor Industry”, went on to point out the need to restructure State and County land use laws to encourage the diversification within our tourism industry for such things as agricultural tourism while sustaining Hawaii’s natural and cultural resources and community values. Restructure State and County land use laws. What laws? Currently, the Hawaii County Zoning Code, Chapter 25 and Hawaii Revised Statues 205 are the primary legal instruments regulating the uses of agricultural lands. Neither addresses agricultural tourism specifically. Although Agri-Tourism is a quickly growing and viable segment of our agriculture industry, it is headed on a collision course with legal and life style conflicts. On one hand, we have an existing land use law that forbids some of the ag-tourism activities on agricultural lands. On the other hand, we lack adequate regulation to prevent an albeit successful ag-tourism enterprise from potentially having an intrusive impact on the surrounding community. Real progress was made last year with the County Council's approval of an amendment to the Zoning Code making it easier for Bed and Breakfast to be permitted on agriculturally zoned land, under certain conditions.

In State law, Hawaii Revised Status Section 205-4.5 lists a hodgepodge of permitted and non-permitted activities and structures, depending on soil classification, on lands classified as Agricultural. For example, overnight facilities such and Bed and Breakfasts are not permitted on land with a State Soil classification as Important. Should State law be amended to remove this legal discrimination based on soil classification? The California Agricultural Homestay Bill, (AB 1258), passed in July 1999, paved the way for more farmers and ranchers to offer tourists overnight visits and serve food. The bill exempts farms and ranching operations that offer overnight stays from the more stringent requirements of operating a commercial restaurant. To qualify for overnight stays, the farms and ranches must produce agricultural products as their primary source of income. The real impact that ag tourism can have, both positive and negative, will not result from what buildings or structures may or may not be a permitted use under Hawaii State Law. The impacts will result from promoting farms as a tourist destination. In Napa California, a storage shed/processing facility would probably be a winery that could attract 1000 visitors a day.

What needs to be done?

Am I supporting de-regulation of commercial activities on agricultural lands? No.

As a strong supporter of Community based planning, I believe government must serve as a facilitator in order to bring the community together and build consensus in working to agree upon a goal. Time and time again it been proved that if government attempts to implement policy without community participation, the odds of success are greatly reduced. Therefore, first and foremost, the Agricultural Community, those with a vested interest, must be consulted as to what degree they wish to include visitors into their lives and what activities can be defined and encouraged under the umbrella of Agricultural Tourism. I believe community meetings need to be held to develop a comprehensive strategy for Ag tourism. This could be the role of the proposed Advisory Commission. The purpose would be to provide the means to encourage potential benefits, such as increased revenue to farmers and historic, cultural and farmland preservation and limit intrusions into surrounding agricultural operations as well as the day to day lives of the local community. From there, I strongly recommend that the Hawaii County Code needs to be amended with a new ag-tourism ordinance requiring a special permit for tourism activities designed to take place on agriculturally zoned land. Within this process, a check list can address potential conflicts between tourism activities and agriculture communities as well as establish some limits. Issues that must be considered should include Farm insurance requirements to cover the added liability of having visitors on the farm, adequate infrastructure such as roads, public parking for visitors cars and/or tour buses, Requirements for public toilet facilities, signage, Disability Access and impacts on, and conflicts with, neighboring farms and agricultural operations from activities such as Farm Stays, Farm Tours and Farm Food Service Operations. The permitting process would also provide the community with an opportunity to attend public hearings to raise any issues and concerns that could reveal a particular activity inappropriate for a specific location. I believe this is the best way to encourage the harmonious, healthy growth of agricultural tourism in our farm communities.

In conclusion, in August of 1999 I had the honor to address our first Ag-Tourism Workshop. I referred to our Hawaii Agriculture Industry as the “Basket of Opportunity”. I pointed out that here in the Kona Coffee Belt, we needed a scenic corridor ordinance designed to preserve intrinsic qualities to be found along our major transportation corridors as they pass through agricultural regions. Today the draft of that ordinance is with the mayor, the planning director and the corporation council for review prior to being forwarded to the County Council. I also pointed out that the biggest threat to Ag tourism lay in the fact that we lacked inadequate means of protecting agricultural lands from being converted to other uses. We won't have much farm tourism without farms! At that time, land making up the Kona Coffee Belt had yet to achieve any real protection as unique Important Agricultural Land under State or County law. Also, farmers on leasehold land faced the continuing insecurity regarding the status of Kamehameha Schools Agricultural Land Lease Policy. I am very happy to be able to report that since 1999 progress has been made regarding both of these issues. First, the Hawaii County Planning Department has recommended that farm land within the Kona Coffee Belt be designated as Important Agricultural Lands. This will be coming before the Hawaii County Council as part of our new General Plan in the near future. Second, but more importantly, a new thirty five years farm land lease is currently before the Kamehameha Schools Trustees awaiting their final approval. We're keeping our fingers crossed!

Environmental impact studies for agtourism?

Hotel, excise and other tax requirements

a General Excise Tax License (not sales tax). This is a form at the tax office and a one time, lifetime fee. The general public pays 4% to the state in general excise task, including on rents and services

Whole sale (.5 % to state)

B&B also has a separate tax (7.25%). This translates to accommodation tax / hotel room tax, or any type of living accommodations less than 180 days in one increment. If you pass the tax on to the visitor you can deduct it from your gross proceeds. Itemize the bill; you don’t have to pay tax on the extra taxes\

Use tax- import products (rarely seen, but be aware of it)

Registered bed & breakfasts

Hawaii is unique, people from everywhere want to visit, and what we’re trying to keep is this uniqueness.

Showing the Big Island agriculture is unique

The Big Island is a legal B& B place, which is not a small task.

The Association has made it easier to promote business

One of the biggest accomplishments is the State Council and the B&B Association coming. This has set some standard requirements, that they want to see

Hawaiian Tourism Authority –legal with the Sierra Club (because they use public funds they are required to do an environmental assessment to determine if there are environmental impacts, if so they need to do an environmental impact statement)

Tourist’s impact on location -- some irreversible damage is happening

Establishing areas for the buses is important

Need for organization and planning is there, to provide the infrastructure to handle the impact

If we organize, we can move ahead responsibly